Liquid Here! Commission VI Of The House Of Representatives Approves PMN For Garuda Indonesia In The Amount Of Rp. 7.5 Trillion

Garuda Indonesia aircraft. (Photo: ANTARA)

JAKARTA - Commission VI of the Indonesian House of Representatives has officially approved the proposed State Equity Participation (PMN) for Garuda Indonesia amounting to Rp7.5 trillion.

The provision of PMN coincided with 9 other state-owned companies.

Deputy Chairman of Commission VI DPR RI Mohammad Hekal read out the results of a working meeting with the Minister of SOEs, Erick Thohir regarding the PMN approval for Garuda Indonesia and 9 other state-owned companies.

"PT Garuda Indonesia (Persero) Tbk in terms of additional State Equity Participation from the 2022 FY State Budget investment financing reserves to PT Garuda Indonesia (Persero) Tbk amounting to Rp7.5 trillion," he said in a Working Meeting with the Minister of SOEs, Monday, July 4.

Hekal explained, this PMN will be used to strengthen capital in order to carry out the business activities of PT Garuda Indonesia (Persero) Tbk.

In addition, Commission VI of the DPR also approved the sale of shares in the portfolio using the Garuda Indonesia rights issue method. This is in the context of the follow-up to the approval of PMN FY 2022 amounting to Rp7.5 trillion. Then, the meeting also approved the conversion of mandatory convertible bonds amounting to Rp. 1 trillion by the government.

Then, capital participation from other shareholders and or the public.

"And the conversion of debt into shares from the value of the creditor's claim settlement," said Haekal.

Along with the approval of PMN for these 10 SOEs, Commission VI DPR RI asked the Ministry of SOEs to pay attention to all notes/views of factions in Commission VI DPR RI.

"Regarding the PMN approval in 2024 and the corporate action initiative in 2022 as an integral part of this agreement," he said.

Previously, Commission VI of the DPR approved the proposal from the Minister of SOEs Erick Thohir regarding the distribution of additional state capital participation (PMN) for 10 state-owned enterprises (BUMN) worth Rp73.26 trillion.

The PMN is divided into two, namely cash of Rp. 69.82 trillion and non-cash of Rp. 3.44 trillion, and sourced from the State Revenue and Expenditure Budget (APBN).